Manchester’s recipe for success continues – this time with some new ingredients in the mix. The business powerhouse leads the country in number of new SMEs created since 2010, according to a new report out today from npower Business and Capital Economics.
But where previous growth has been dominated by textiles, retail and legal activities, it is mobile food services, event catering and restaurants that are set to dominate future SME growth in the area. These will contribute £17 million per year to the economy of Manchester by 2021 and add around 900 jobs in the coming five years, according to the report’s authors.
They will be followed by growth in wireless telecommunications activities, hospital activities, temporary employment agencies and management consultancy, according to the report.
Richard Longbottom, Acting Head of npower Business, said: “Manchester has secured the magic ingredient for business success, leading the country in the number of new SMEs. The city’s culinary offering however has been unfairly overlooked –with Manchester last awarded a Michelin star in 1974. But as our report shows, its restaurant scene and entrepreneurial spirit are super powering the city. At npower Business, we are committed to working closely with SMEs to help them grow and we’re confident that recognition is just around the corner for this new generation of business leaders!”
The npower Business report comes as the number of SMEs in the city has risen 51% since 2010 to a total of 18,750 enterprises. These have together created over 37,000 new jobs in Manchester and that’s why npower Business has partnered with Tim Campbell, winner of the first series of BBC’s The Apprentice, to highlight and celebrate the SME businesses super powering Manchester’s economy.
Clothing manufacture and legal activities are currently the largest SME sectors in Manchester relative to national averages, the report highlights, with SME success in the city underpinned by favourable demographics, low business rates and low property prices relative to other cities.
In total, SMEs in the leading five sectors will boost employment in the city by 3,900 workers. These same five industries will provide additional gross value added of around £370 million to Manchester’s economy by 2021.
